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A Prelude to the Foundation of Political EconomyWorld of Modern Petroleum and the Oil Rent

A Prelude to the Foundation of Political Economy: World of Modern Petroleum and the Oil Rent [In this chapter, the objective is to unravel the enigma of rent and to present a well-defined theory of rent unique to the global oil industry. The truism of the above citation from Smith’s magnum opus shall be a piece of the puzzle that will hopefully find a specific resolution for the oil industry—albeit without the entrapment of mainstream economics monopoly—in this chapter. This theory must patently originate from the valorization of the landed (surface and/or subsurface) ownership—which in our case extends to the ownership of oil deposits—toward the exploration, development, and the production of oil. Valorization of the landed property is an act of capital as a modern social relation (not an inanimate thing) through the medium of nature. This mediation is socially involuntary (i.e., objective) and has no bearing on the wishes of the individual owner of the land or the deposits underneath. The oil deposits once valorized step into a mutuality of synthetic relation with capital, and just like space and time directing space-time in modern astrophysics, do not have an independent existence from one another. In other words, there are no separate logics, one for property in nature (geography or territory) and another for capital where it comes to the notion of rent.1] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Prelude to the Foundation of Political EconomyWorld of Modern Petroleum and the Oil Rent

Part of the The Economics of the Middle East Book Series
Bina, Cyrus
Springer Journals — Oct 13, 2015
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29 pages

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Publisher
Palgrave Macmillan US
Copyright
© Palgrave Macmillan, a division of Nature America Inc. 2013
ISBN
978-1-349-29671-2
Pages
45 –74
DOI
10.1057/9781137106971_3
Publisher site
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Abstract

[In this chapter, the objective is to unravel the enigma of rent and to present a well-defined theory of rent unique to the global oil industry. The truism of the above citation from Smith’s magnum opus shall be a piece of the puzzle that will hopefully find a specific resolution for the oil industry—albeit without the entrapment of mainstream economics monopoly—in this chapter. This theory must patently originate from the valorization of the landed (surface and/or subsurface) ownership—which in our case extends to the ownership of oil deposits—toward the exploration, development, and the production of oil. Valorization of the landed property is an act of capital as a modern social relation (not an inanimate thing) through the medium of nature. This mediation is socially involuntary (i.e., objective) and has no bearing on the wishes of the individual owner of the land or the deposits underneath. The oil deposits once valorized step into a mutuality of synthetic relation with capital, and just like space and time directing space-time in modern astrophysics, do not have an independent existence from one another. In other words, there are no separate logics, one for property in nature (geography or territory) and another for capital where it comes to the notion of rent.1]

Published: Oct 13, 2015

Keywords: Factor Income; Capitalist Mode; Scarcity Rent; Differential Rent; Rent Theory

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